Standard Chartered could face legal action in the United Arab Emirates

BRITAIN’S Standard Chartered bank could face legal action in the United Arab Emirates after it agreed to close some accounts there as part of an anti money-laundering settlement in the US.

PUBLISHED: PUBLISHED: 00:01, Fri, Aug 22, 2014

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The threat followed this week’s £179million settlement between the bank and the DFS [GETTY]

The UAE Central Bank said between 1,400 and 8,000 customer accounts could be affected. It warned Standard Chartered would be liable to legal action from account holders “because of the material and moral damage that is falling on them”.

The threat followed this week’s £179million settlement between the bank and the New York Department of Financial Services (DFS) over failings in anti money-laundering systems.

The bank agreed to close some accounts in UAE after the DFS alleged there were potentially high-risk transactions taking place in UAE and Hong Kong branches.

We have noted the announcement made by the UAE Central Bank. We always work with our regulators to achieve the right outcomes

Standard Chartered

The central bank said there had been “no significant violations” of money-laundering rules at branches in the UAE.

Standard Chartered said: “We have noted the announcement made by the UAE Central Bank. We always work with our regulators to achieve the right outcomes.”